House of Representatives Committees

Chapter 1 Advisory report

Scope of the Bill

1.1The Social Security and Other Legislation Amendment (Further 2012 Budget
and Other Measures) Bill 2012 (hereafter referred to as the Bill) was
introduced to the House on 12 September 2012.

1.2This compendium Bill introduces a number of amendments relating to support
measures for Indigenous communities, financial assistance given to families and
family support arrangements. Many of the amendments are a clarification of 2012
budget policies. Others aim to clarify policies through technical amendments
and improve the operation of existing legislation.

1.3The Bill contains 6 schedules addressing the following matters:

nSchedule 1—Extending
Cape York welfare reform trial

nSchedule 2—Indigenous
education payments

nSchedule 3—Social
Security Appeals Tribunal

nSchedule 4—Amendments
relating to certain child support declarations

nSchedule 5—Schoolkids
bonus

nSchedule 6—Other
Family Assistance tax amendments

Referral

1.4The Selection Committee report no. 65 of Thursday 13 September referred
the Bill to the Standing Committee on Social Policy and Legal Affairs for
inquiry and advisory report.

Examination of drafting changes regarding schoolkids bonus,
child support legislation and the Social Security Appeals Tribunal.[1]

Conduct of the inquiry

1.6In line with the reasons given for referral, the Committee has contained
its consideration of the Bill to Schedules 3, 4, 5 and 6 which address the Social
Security Appeals Tribunal, child support legislation, schoolkids bonus, and
Family Assistance respectively.

1.7Further, given the Selection Committee reason for referral, the
Committee has examined the drafting of these changes and their consistency with
the objectives and policy intent of the legislation.

1.8Given this narrow focus of the inquiry, the Committee determined not to
issue a call for submissions or to conduct a public hearing. The Committee has
examined the proposed amendments and provides this advisory report for the
Parliament to aid in its deliberation of the Bill.

clarify
that the SSAT Principal Member perform functions and powers enabling certain
standards for the review process; and

make
technical amendments;

1.10The Summary of this Schedule states that it:

introduces a package of minor amendments to improve the
operation of the Social Security Appeals Tribunal (SSAT) in the social
security, child support, family assistance and paid parental leave
jurisdictions. For example, some amendments will enable SSAT members to release
protected information to relevant authorities in certain circumstances where
there is a risk to the life, health or welfare of a person. Other amendments
address current gaps in privacy protection for information and documents.[2]

1.11The following sections outline the effects of amendments in the three
key areas: release of protected information in controlled circumstances,
strengthening privacy protections, and harmonising review mechanisms through
the SSAT.

Release of protected information

1.12Amendments are proposed relating to the release of protected information
where there is risk to the life, health or welfare of a person or child.
Currently, SSAT are prevented from releasing protected information to
authorities such as law enforcement officers or child welfare authorities, even
where there is known to be risk to life.

1.13Privacy and the security of personal information is deemed of high
importance, as is the protection of life and welfare particular where children
may be involved.

1.14These amendments permit the disclosure of information which would
otherwise be classed as protected to regulated authorities in circumstances
where there is assessed to be risk to the life, health or welfare of a person.
This would bring the SSAT permitted actions in line with the National Framework
for Protecting Australia’s Children.

1.15The Committee is satisfied with the safeguards and restrictions established
around the release of information in these risk situations.

Privacy protections

1.16Alongside permitting the release of protected information in situations
where there is threat to life, health or welfare, the Bill proposes
strengthening privacy protections for information and documents.

1.17Currently there are gaps in the privacy protections afforded as
directions by the Principal Member of the SSAT to not disclose information or
documents can only be given at certain stages of a review. This is clearly
inadequate.

1.18Amendments would extend the capacity for directions to not disclose
information or documents to any stage of the review and would also extend
confidentiality obligations to those providing services during the hearing of
the review.

1.19These are important additions to current protections and address gaps
that exist in regard to protecting the personal information of those accessing
the SSAT. The Committee supports the strengthening of privacy protections through
the expansion of confidentiality obligations and the extended scope to issue
non-disclosure orders.

Review mechanisms

1.20The Bill contains a number of amendments in relation to the review
operations of the SSAT. Several of these amendments relate to consistency in
language and definitions.

1.21The amendments of consequence address the following:

nGrounds for the
dismissal or reinstatement of a request for review

nDetermining who may
make submission on a party’s behalf, and

nThe participation in
the review of parties responsible for a child.

1.22The changes to the grounds for dismissal or reinstatement of a request
for review are intended to harmonise the review provisions of the SSAT and
assist the operation of the Tribunal to achieve its objectives.

1.23The intent of other amendments is to ensure all parties involved are
informed of pertinent decisions, thereby increasing the equity and
communications processes of the SSAT.

1.24Further amendments provide the SSAT Principal Member with the capacity
to exercise discretion when determining whether a submission may be made by one
party on behalf of another. In arriving at this decision, the privacy of
parties concerned must be considered which strengthens privacy protections for
those involved and the privacy regime of the SSAT.

1.25The amendments are seen as strengthening privacy protections for parties
engaging with the SSAT and ensuring the operation of the SSAT to deliver fair
outcomes in line with its statutory objective.

1.26The Committee did not identify issues with the drafting of these
amendments.

Schedule 4—Amendments relating to child support declarations

1.27The Bill amends the following acts:

nChild Support
(Assessment) Act 1989 and Child Support (Registration and Collection)
Act 1988 to clarify arrangements when the amount of child support payable
under a child support assessment is reduced in certain circumstances.

1.28The Summary of this Schedule states that

In this Schedule, amendments are made to the child support
legislation to confirm the longstanding policy and administration in cases
where the amount of child support payable under a child support assessment is
reduced because:

na court decides that
the payer is not a parent of one of the children in the assessment; but

nthe payer remains
liable for at least one other child in the assessment.[3]

1.29The amendments in the Bill relate to cases where paternity is challenged
and it is found that a father has paid child support for a child which is now
determined to be not his biological child. In these instances the policy and
administrative redress has been for the total amount of child support paid to
be applied to any remaining children for which the father is liable for child
support or has a child support debt. If excess payments have occurred, these
may be recovered from the payee by applying for a court order.

1.30In general, this process has enabled determinations to be made which
provide financial redress for the child support payer without recourse to court
actions. This policy and administration has been carried out through declarations
made under section 107 of the Child Support (Assessment) Act 1989.

1.31However, the legislative interpretation in the judgement of the Full
Court of the Family Court of Australia in Child Support Registrar v Farley
and Anor [2011] calls into question the authority for this policy and
administration. In short, for future cases of this nature it would necessitate the
payer taking court action to obtain repayment from the payee of the overpayment
for the child he is now deemed not liable for. Following this, the payer would
be required to make an additional payment back to the payee for any other
children for whom he remained liable.

1.32The end balance of the financial payment or repayment between the two
parties would remain unchanged from the existing arrangements, however the
recent judgement would introduce a complex administrative process to arrive at
this outcome.

1.33The amendments proposed give effect to the current policy and
administration approach, and enable the Registrar to take into account all
amounts of child support paid or owed in amending the assessment. This provides
a more streamlined and sensible administrative approach.

1.34The Committee did not identify issues with the drafting of these
amendments.

Schedules 5 and 6—Schoolkids bonus and Family Assistance

1.35The Bill amends the following acts: A New Tax System (Family
Assistance) Act 1999, A New Tax System (Family Assistance)
(Administration) Act 1999 and Social Security Act 1991 to make
technical amendments.

1.36The Summary of Schedule 5 states that it ‘makes clarifying and technical
amendments to the schoolkids bonus legislation, consistent with the intended
policy.’[4] The Summary of Schedule 6
states that it:

makes minor clarifications to portfolio legislation, such as
the family assistance clean energy legislation – including to the rules for
rounding of payment rates.[5]

1.37The amendments relating to payments of the schoolkids bonus are intended
to clarify existing eligibility and payment method. The amendments do not
represent a change to policy but ensure that, for those eligible, the payments
are delivered automatically at identified times during the year when education
expenses are likely to be incurred.

1.38Other minor and technical amendments are made in Schedule 6 to family
assistance and social security legislation. Some of these amendments relate to
the Government’s Clean Energy Future Plan and the payment of assistance measure
to eligible families.

1.39These amendments clarify provisions and do not represent any change in intended
policy.

1.40The Committee did not identify issues with the drafting of these
amendments.

Committee comment

1.41The Committee has considered the amendments in this Bill with regard to
the Selection Committee referral to examine drafting changes. The Committee has
not considered the policy of these amendments, as the amendments do not
represent a change in existing or introduced policy of the Government.

1.42Predominantly the amendments represent clarification of provisions, or
technical changes required to give effect to payment assistance. In relation to
the child support changes, these amendments affirm existing policy and
administrative arrangements.

1.43The amendments in regard to the SSAT are more of more substance and do
represent some operational changes. However these changes are for the benefit
of those utilising the SSAT by enhancing appeals provisions, strengthening
privacy protection and information security, and introducing measures aimed to
protect life or welfare in circumstances when there is risk.

1.44The Committee has not identified issues with the amendments presented in
Schedules 4, 5 or 6 the Bill. The Committee recommends that the House pass the
Bill.

Recommendation 1

1.45

The Committee recommends that the House of Representatives
pass the Social Security and Other Legislation Amendment (Further 2012 Budget
and Other Measures) Bill 2012.